YY Corporation has two branches to which merchandise is transferred at cost plus 20%, plus freight charges. On November 30, 2024, YY Corporation shipped merchandise that cost P5,500 to its CC Branch, and the P200 shipping charges were paid by YY Corporation. On December 15, 2024, the DD Branch encountered an inventory shortage, and the CC Branch shipped the merchandise to the DD Branch at a freight cost of P160 paid by the CC Branch. Shipping charges from the home office to the DD Branch would have been P175. Prepare the journal entries of home office and branches.

YY Corporation has two branches to which merchandise is transferred at cost plus 20%, plus freight charges. On November 30, 2024, YY Corporation shipped merchandise that cost P5,500 to its CC Branch, and the P200 shipping charges were paid by YY Corporation. On December 15, 2024, the DD Branch encountered an inventory shortage, and the CC Branch shipped the merchandise to the DD Branch at a freight cost of P160 paid by the CC Branch. Shipping charges from the home office to the DD Branch would have been P175. Prepare the journal entries of home office and branches.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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